Financial switch will boost growth

FULL implementation of the National Financial Switch (NFS) mobile payment channel will this year drive exponential growth among the mobile money platforms as they continue to be adopted by the market at a faster pace.

Mobile money has in the first quarter of this year recorded a growth of 81.0 percent year on year to K33.9 billion.

According one of Bank of Zambia’s monthly statistics, mobile money has remained the leading channel for payments for the

MFEZ industrial

first quarter of 2021.

The use of mobile money platforms by masses and Micro

yards on course

Small and Medium Enterprises (MSME’s) has shown an exponential growth and still growing, says Bankers Association of Zambia (BAZ) Chief Executive Officer, Leonard yards Mwanza. in the LS-MFEZ. By BUUMBA CHIMBULU

Works are going on

“In 2020, Mobile Money payments leap frogged all the

CONSTRUCTION of and contractor is

payments streams under the Zambia Electronic Clearing industrial yards in the on site.

“Once that facility is House, and this is continuing at Lusaka a fast South pace. MultiWe expect this

Facility Economic done, we will be able

positive trajectory to continue in 2021 especially with the Go

Zone (LS-MFEZ) to see SMEs move into Live of the NFS Mobile Money which Platform,” will boost Mr local Mwanza the zone said and in operate an

participation in the from there,” Mr Kunda

interview.

area is expected to said.

He explained that the full implementation be completed in of the the NFS He also mobile observed

next 12 months. the need to increase

payment channel, which occurred on 30th June 2021 had

Participation incentives to investors

changed the ecosystem of retail and transaction banking is

of local investors willing to invest in

Zambia. Mr Mwanza stated that the silos or bilateral linkages in economic the zone. Mr Kunda zone is currently expressed concern

between banks and mobile money operators had now collapsed

low due to, among that Zambia had stiff

into a shared payment channel. other reasons, the competition from

minimum investment countries such as

He said bank customers from all participating banks could

of US$500,000 which Rwanda, Kenya, now move funds from their bank some accounts, locals say straight is Egypt, into South another Africa,

prohibitive. Mozambique and

bank account.

LS-MFEZ Business Zimbabwe that offered

Mr Mwanza indicated that customers could also move funds

Development better incentives.

from mobile money account offered by any of the mobile money Manager, Francis Mr Kunda said the Kunda, said minimum US$500,

operators and vice versa, at a click of a button on their Mobile

construction works of 000 investment for

Money App’s. the industrial yards investors to qualify for

were currently on available incentives

He emphasised that here was no waiting as it was straight

course. a limiting factor for through processing and funds were Mr Kunda reflected in real local time. businesses. He

explained that the however said LS-MFEZ

“This is what we are referring to as the disrupting power

industrial yards, had been lobbying of technology in the 4th Industrial once Revolution completed, in the its banking parent Ministry of

sector,” Mr Mwanza said. would boost local Commerce Trade and participation in the Industry which was

Mr Mwanza urged businesses in markets and elsewhere

economic zones. talking to Ministry of to embrace digital payments and He to explained take advantage in Finance of the to improve the

an interview that incentives.

changing mind-set in the country.

the industrial yards “For investors to “Banks have seen this paradigm would enable shift and small they are qualify, now one has to

and medium sized invest minimum of

innovatively developing products which complement each other

entrepreneurs to set US$500,000 and to

in the entire payment ecosystem.

“This laboratory is targeted at the up businesses in the some of the local operations we “Cooperation are setting up starting has now with replaced Competition and brand

zone. investors that is a Rufunsa, were we are working with small “That one is on the limiting factor. If

positioning is now about culture and philosophies as opposed to scale miners there and art is anal miners table and we have you invest less than from the surrounding processes, area,” which he said. are now on shared Citizen Economic platforms,” he stated.

S$500, 000 you will Mr Keer said the laboratory would also and Empowerment not be entitled to these be open to the general public for them to Commission who are incentives,” Mr Kunda come and have their samples tested. constructing industrial said.